The strong rally in the Australian and New Zealand dollars indicate that the demand for high yielders continue to be voracious.
Last night, New Zealand Q1 GDP printed right in line with expectations, but apparently the 1.0 percent growth was enough to bring kiwi bulls back into the market. Australian private sector credit was also strong in the month of May, which helped to exacerbate the rise in the Australian dollar going into next week?s interest rate decision. With retail sales, service sector PMI and the trade balance due for release, the Australian dollar will be in play next week. Meanwhile there is no New Zealand data on the calendar. As for Canada, the currency reversed strongly after hitting a 30 year high intraday. The line in the sand is drawn for USD/CAD ahead of next week?s IVEY PMI and employment data.